Introduction
Dividing retirement benefits like the Le Moyne College 403(b) Plan during a divorce often requires more than simply agreeing on who gets what. Because this is an employer-sponsored retirement plan, any division must meet the requirements of federal law. That’s where a Qualified Domestic Relations Order (QDRO) comes in.
A QDRO is a legal order that allows a retirement plan to pay a portion of an account holder’s benefits to an alternate payee—usually a former spouse—without violating tax laws or plan rules. But getting it right takes detailed planning, especially with 403(b) plans like this one, which often involve multiple contribution types and complex vesting schedules.
Plan-Specific Details for the Le Moyne College 403(b) Plan
Before you start drafting a QDRO, it’s essential to understand the specifics of the Le Moyne College 403(b) Plan, as each retirement plan has its own rules and requirements.
- Plan Name: Le Moyne College 403(b) Plan
- Sponsor: Unknown sponsor
- Plan Address: 1419 Salt Springs Road
- Industry: General Business
- Organization Type: Business Entity
- Status: Active
- Plan Number: Unknown
- EIN: Unknown
- Effective Date: Unknown
- Plan Years: 2024-01-01 to 2024-12-31
- Original Start Date: 1962-09-01
Because certain details like the EIN and Plan Number are not publicly available, you will need to request these directly from the plan administrator during the QDRO drafting process. These are required elements in any valid QDRO.
Why a QDRO is Necessary for the Le Moyne College 403(b) Plan
The IRS and Department of Labor have strict rules about how retirement plan benefits can be assigned to anyone other than the plan participant. A QDRO is the only way to legally divide plan benefits between divorcing spouses without triggering taxes or penalties. The Le Moyne College 403(b) Plan cannot distribute funds to a former spouse unless a court-approved QDRO is submitted and accepted by the plan administrator.
Key Components of a QDRO for This Plan
When preparing a QDRO for the Le Moyne College 403(b) Plan, you’ll want to address the following complex areas that are unique to 403(b)/401(k)-style plans:
Employee and Employer Contributions
Most 403(b) plans consist of both employee deferrals and employer matching or discretionary contributions. When dividing the Le Moyne College 403(b) Plan in a divorce, it’s important that the QDRO specifies whether the alternate payee is receiving a percentage of just the employee contributions, or both employee and employer contributions. If employer contributions are subject to vesting, that brings up additional issues, which we’ll address next.
Vesting Schedules and Forfeited Amounts
Unlike employee deferrals, employer contributions often have a vesting schedule—meaning they are earned over time. If the participant isn’t fully vested, a portion of the employer contributions could be forfeited if they leave the company. Your QDRO should clarify whether the alternate payee receives only vested amounts, or if it includes a provision for future vesting.
Be cautious. If the QDRO awards 50% of an account “as of the date of divorce,” and that amount includes unvested employer funds, the alternate payee may never receive the full intended share unless they wait for full vesting or the participant stays employed long enough to satisfy those conditions.
Loan Balances and Repayment Obligations
If the participant has taken a loan against their Le Moyne College 403(b) Plan, this affects the total value of the account. Loans reduce the plan balance and, therefore, what’s available to divide. Some QDROs account for this by assigning the alternate payee a share after subtracting the loan; others divide the full balance, including the loan amount. Your order should make this clear, and specify whether the alternate payee is responsible for any part of the loan (usually they are not).
Roth vs. Traditional Contributions
The Le Moyne College 403(b) Plan may contain both traditional (pre-tax) and Roth (after-tax) contributions. These are subject to different tax treatment upon distribution, so your QDRO must address whether the alternate payee is receiving a portion from one account type, both, or a pro rata share. Equal dollar awards may translate into very different post-tax values, so transparency in how the funds are divided is critical.
Step-by-Step QDRO Process
Here’s what to expect when dividing the Le Moyne College 403(b) Plan through a QDRO:
- Gather Plan Information: Request a current plan statement and Summary Plan Description (SPD). Identify the Plan Number and EIN from the administrator.
- Draft the QDRO: The QDRO needs to comply with both legal guidelines and the specifics of the Le Moyne College 403(b) Plan. Avoid cookie-cutter forms.
- Submit for Preapproval (if accepted): Some plans accept a draft for review before court signature. Check with the administrator to avoid rejection later.
- Obtain Court Approval: File the QDRO with the divorce court for the judge’s signature.
- Send to Plan Administrator: Submit the signed QDRO to the administrator for final approval and processing. Follow up for execution timelines.
Common Pitfalls in QDRO Drafting
Many people assume that any attorney can handle a QDRO, but mistakes can be costly. At PeacockQDROs, one of the most common issues we see is failure to properly address:
- Loan offsets and their effect on the award
- Vesting language that results in underpayments
- Failure to include both Roth and traditional accounts
- Using outdated plan name or incorrect plan identifiers
That’s why we created this guide on the most common QDRO mistakes and how to fix them.
What Sets PeacockQDROs Apart
At PeacockQDROs, we’ve completed thousands of QDROs from start to finish. That means we don’t just draft the order and leave you to figure out the rest. We handle the drafting, preapproval (if applicable), court filing, submission, and follow-up with the plan administrator. That’s what sets us apart from firms that only prepare the document and hand it off to you.
We maintain near-perfect reviews and pride ourselves on a track record of doing things the right way. Whether you’re working with an attorney, mediator, or preparing this on your own, we can step in at any stage.
If you’re still unsure how QDRO timing works, see our helpful guide on how long it takes to get a QDRO done.
Final Thoughts
Successfully dividing the Le Moyne College 403(b) Plan requires attention to plan-specific details, awareness of contribution types, and a properly structured QDRO. Getting it right the first time spares you major delays and costly re-dos.
We’re here to help make it simple. Learn more about our services at PeacockQDROs or reach out directly to speak with an experienced QDRO attorney.
Contact Us
If your divorce was in California, New York, New Jersey, Connecticut, Kansas, Missouri, Iowa, or North Dakota, and you have questions about qualified domestic relations orders or dividing retirement assets like the Le Moyne College 403(b) Plan, contact PeacockQDROs. We specialize in QDROs and have successfully processed thousands of orders from start to finish.
Get the answers you need—explore our QDRO resources or reach out for personalized help if you’re in one of our service states.